Both Sides of the Table

JUNE 5, 2011

On a public stock market that is the value that investors place on future free cash flows of the business discounted to today’s date to account for the time value of money. The price of public stocks change instantly in reaction to news that is perceived to affect the future value of that company. It was early 2000.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

JULY 29, 2010

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). This is minutes 8-11.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Ben's Blog

MAY 24, 2021

There are a number of trends concerning IPOs and capital formation to note: First, the raw number of IPOs has declined significantly: From 1980-2000, the US averaged roughly 300 IPOs per year; from 2001-2016, the average fell to 108 per year. double the rate of the prior year, 103 of those being venture-backed companies.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Version One Ventures

OCTOBER 15, 2020

Up until late August, Lightning Labs had capped the channel capacity and payment size for users of their popular implementation of the network to ~$2000 USD and ~$500 respectively to better protect user funds with experimental software. . And >40% of that revenue is coming from in-game purchases.

Networking 168

Networking Global OTC Security 168

Steve Blank

OCTOBER 24, 2016

After running Microsoft for 25 years, Bill Gates handed the reins of CEO to Steve Ballmer in January 2000. If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. On day one there are no customers to lose, no revenue and profits to decline.

Azure 120

Azure Business Model Cloud Artificial Inteligence 120

Steve Blank

OCTOBER 24, 2016

After running Microsoft for 25 years, Bill Gates handed the reins of CEO to Steve Ballmer in January 2000. If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. On day one there are no customers to lose, no revenue and profits to decline.

Azure 120

Azure Business Model Cloud Artificial Inteligence 120

Gust

JANUARY 31, 2013

Modern theories of economics and finance teach us that in a world of perfect information, the market will decide what a fair price is for any company’s stock at any point in time based on its current financial condition, results of past operations, analysts’ forecasts of future performance, industry conditions and so on.

SEC 158

SEC Prospectus United States Technical Review 158

Both Sides of the Table

DECEMBER 13, 2010

Within a year, by late 2000 / early 2001 consulting firms were firing people en masse. Since that date the S&P 500 is up 2.45% while Accenture stock is up 206% with revenue of $23 billion and a market cap of $32 billion. Ameet said, “Don’t worry, we’ll be fine, just wait for the next downturn.&#.

Turkey 302

Turkey Differentiation IP Technical Review 302

Both Sides of the Table

FEBRUARY 25, 2010

We moved into the legal process and final due diligence in January and February of 2000. Our final closure was the first week of March 2000. If anything changed (stock market crash, real estate crash, somebody trying to buy Salesforce.com, whatever) I could end up with goose eggs. They accepted my argument.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

AUGUST 28, 2009

My competitors from those days STILL love to talk about how much money we raised in February 2000 (get over it already!). I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. We do hand out stock options. I acknowledge it was a mistake. We were hot.

PR 331

PR Software Review Ireland Germany 331

Up and Running

AUGUST 18, 2014

If you’d still like to be running the company in 10 years time, you’re probably going to want to ensure that exit plan comes in the form of a steady revenue stream that allows you to pay off investors; an IPO instead of a buy-out; or simply opt for a different strategy – your own funds or private/government loans and grants.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

YoungUpstarts

DECEMBER 5, 2013

Of course incumbents cannot be expected to jeopardize their revenue streams or investments in CRM platforms with new concepts that wipe out the need for their current solutions. Too much was at stake, we couldn’t afford the risk of destabilizing everything and losing substantial revenue. That was a decade ago. How about today?

Programming 150

Programming Turkey Social Media Redemption 150

Mike Michalowicz

FEBRUARY 18, 2021

in February 2000 – part time, with the goal to quit my full-time job within one year. By the end of December, 2000 I had sold over $100,000 in Hunter Douglas shadings, through my company, Custom Blinds for Less, Inc. I started this in business part-time, in 2000, loaded with a prayer and a fully stocked min-van.

Balance Sheet 98

Balance Sheet Design Founder Omaha 98

Both Sides of the Table

JULY 27, 2014

Most of those industries are fee-based and are competing on revenue growth. Scott pointed to B-round SaaS valuations in excess of $100 million in $15m+ financing rounds with companies with very limited proof of customer traction or revenue. I don’t totally agree with that view.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

ConversionXL

FEBRUARY 15, 2018

To create such a feeling make sure to: Avoid stock photos. Even though they may represent a much lower lifetime value for a brand, they can represent a significant chunk of revenue over a year. don’t fake you only have 2 items in stock when you have a full warehouse). Pay close attention to typography. Use fewer colors.

eCommerce 125

eCommerce Conversion Sales Technical Review 125

Austin Startup

DECEMBER 17, 2017

I recall that MSA’s stock increased 5X or thereabouts after our deal, which by no means implies that Peachtree deserved sole credit for all that. Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. We just closed out in 2017 our 10-year early-stage venture fund started in 2000.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

Steve Blank

JULY 15, 2010

The two decades from 1979 when pension funds fueled the expansion of venture capital to 2000 when the dot-com bubble burst were the Golden Age for entrepreneurs and venture capital firms. VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. Here’s why. Source: NVCA.).

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Steve Blank

MARCH 31, 2014

I’m honored to be at a university noted for knowledge, and in a city with 2000 years of history – home of Gaudí one of the 20 th century’s greatest innovators. Companies horde cash and squeeze the most revenue and margin from the money they use. The stock market clearly values companies that can deliver disruptive innovation.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

SEPTEMBER 29, 2009

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. The professor plotted data and showed us statistically that most people buy stocks when they are booming (e.g.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Both Sides of the Table

FEBRUARY 17, 2010

I was living in Europe in 2000 when the first WAP phones (Wireless Access Protocol) were introduced. Within a year WAP became the laughing stock of the mobile industry. Apple wants to take a major share of the revenue. Absolute Power Corrupts, Absolutely. These phones were so over hyped. It was slow. It was hard to use.

Flash 326

Flash Mobile Application Development Cloud 326

www.inc.com

SEPTEMBER 24, 2011

Why Arizona Bay started taking stock from its customers instead of cash. Jumpstart was one of Grahams first clients; it signed on shortly after he founded Arizona Bay, in 2000. During the first Internet boom, companies that provided services to tech start-ups were all too happy to work for stock. The 2011 Top Lists.

Arizona 40

Arizona Equity Iowa Venture Capital 40

abovethecrowd.com

FEBRUARY 27, 2019

In 2000, Eric Baker and Jeff Fluhr founded StubHub , a secondary ticket exchange marketplace. The estimated annual GMV of GOAT and its leading competitor Stock X is already over $1B per year (on a combined basis). billion of GSV (gross services revenue) across 2.0 The company was acquired by ebay in January 2007.

Internet 88

Internet Matching Vertical Hosting 88

Steve Blank

MARCH 18, 2011

Dot.com Bubble ( 1995-2000): “ Anything goes” as public markets clamor for ideas, vague promises of future growth, and IPOs happen absent regard for history or profitability. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 334

Internet IPO Silicon Valley Agile 334

Both Sides of the Table

JUNE 22, 2011

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. Ah, but today’s Internet companies have real revenue! I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Feld Thoughts

APRIL 7, 2017

At the peak in the spring of 2000 Interliant hit $55 / share and was worth over $3 billion. By breakfast in the summer of 2001, the stock was trading under $1 / share. billion market cap) in the spring of 2000. I was exhausted. Back to breakfast. One year later we were on a steep downhill slope to a failed business.

SEC 148

SEC New York Venture Capital Partner 148

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

.” Here’s the summary of his track record (excerpted from the Fast Company article): Forefront — IPO’ed in 1995 by CBT — CBT stock fell 85% in 1998 and prompted class-action lawsuits. invested, IPO’ed in 2000 for $32/share — stock price now $2. Support.com — On 2.5m Surely not.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Steve Blank

JUNE 17, 2011

My esteemed colleague Ben Horowitz essentially makes four arguments : 1) look at how relatively cheap Apple, Google and Amazon stock is compared to their growth; 2) Major technology cycles tend to be around 25 years long with the bulk of the purchases occurring in the last five-to-ten years. Know when to run. Kenny Rogers – The Gambler.

Investment Bankers 310

Investment Bankers Stock Valuation Venture Capital 310

Occam's Razor

MAY 2, 2017

Outcomes: Revenue | Ideas Funded Behavior: Path Length | Cart Abandonment Rate Acquisition: Assisted Conversions | Share of Search. Every ecommerce site has to obsess about Revenue. With advertising revenue in a tailspin, it is more important than ever. Let your competition be lame and play by 2000 worldviews.

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Ben's Blog

JUNE 18, 2011

Here is a telling statement from an analyst on Apple’s most recent quarter: Apple’s stock price to earnings ratio has dropped to 16.72. If we are in a bubble, that is a bit of an odd commentary for a company that grew revenues 83% year-over-year and grew earnings 93% year-over-year. Ex-cash it’s 13.5.

Technical Review 76

Technical Review Software Review Valuation Internet 76

Feld Thoughts

AUGUST 5, 2011

This one is more specific than “ignore the macro economy&# – instead, it’s “ignore the Dow and the stock market and get back to work on your business.&#. In 1999, 2000, and 2001 I had a my.yahoo.com page up with a bunch of stocks, including a number of companies I was an investor in, as my home page. .&#

Stock 155

Stock Entrepreneur Chicago Finance 155

YoungUpstarts

MARCH 27, 2014

In our case, we’ve evolved from a company that developed the first software to graphically represent business processes in the 1990s, to a collaborative enterprise architecture tool in the 2000’s, and finally, to a social, web-based communication platform that includes integrated social media tools today. Pay Attention to the Trends.

Social Media 205

Social Media Architecture .Net Operations 205

SVPG

SEPTEMBER 30, 2016

Hate mail started streaming in from everywhere - including emails directly to Bill Gates who would forward them on to the team with messages like "this is depressing MSFT's stock price. To be specific, AdWords is currently 16 years old, and last year alone it generated well over $50B in revenue.

Product 60

Product Technical Review Software Review Engineer 60

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 115

Retention Customer Developer Programming 115

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 112

Retention Developer Customer Programming 112

Berkonomics

JULY 8, 2021

It was an Internet CEO roundtable in early 2000 (almost a year before the crash of the stock market) where it became obvious before the public was aware, that the bubble was just beginning to burst for such tech businesses.

Initial Public Offering 62

Initial Public Offering Angel Investor Stock Email 62

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 105

Retention Customer Developer Programming 105

Both Sides of the Table

SEPTEMBER 17, 2017

Our own government in the US regularly looks for cases of racketeering, crack down on the drug trade, try to prevent illegal sex trafficking, looks out for insider trading on stocks, tries to stop child pornography and so forth. I understand why people are turned off by regulation and of course undue regulation can stifle business.

Government 280

Government Distribution Stock United States 280